Foreign Relations of the United States, 1950, The Near East,
South Asia, and Africa, Volume V

Editorial Note

A memorandum from Wilfred Malenbaum, Investment and Economic
Development Staff, to John E. O’Gara, Office of the Assistant
Secretary of State for Economic Affairs, dated April 25, not
printed, reported the Export-Import Bank would review its policy on
the extension of credits to Saudi Arabia on April 26. He recommended
that the Department press the Bank to approve as many of the
proposed projects as practicable, since it was the opinion of the
Bureau of Near Eastern, South Asian, and African Affairs that
disapproval of all or a large part of the Saudi Arabian application
would have a deleterious effect on United States relations with
Saudi Arabia. (103–XMB/4–2550)

The Saudi Arabian application was considered by the Board of
Directors of the Export-Import Bank on April 26, June 22, June 29,
July 6, and July 13, but a decision was deferred, pending action by
the National Advisory Council. A memorandum by Jerome J. Stenger,
Office of Financial and Development Policy, Investment and Economic
Development Staff, to Leroy Stinebower, dated July 18, not printed,
reported that the National Advisory Council staff committee had
approved Export-Import Bank consideration of the Saudi Arabian
application. The National Advisory Council advised the [Page 1182]Export-Import Bank on July 21
that, through a telephone poll completed that day, it unanimously
approved consideration by the Bank of applications by Saudi Arabia
for credits up to $15 million to finance specific projects which the
Bank found economically sound. On July 20 the Export-Import Bank
approved a credit of $15 million for the Saudi Arabian Government.
Information on the loan is in Department of State files 103–XMB and
NAC Files, Lot 60D137, a master
file of the documents of the National Advisory Council on
International Monetary and Financial Problems for the years
1945–1958, as maintained by the Bureau of Economic Affairs of the
Department of State.